Date: 29/11/2010

Broadcom to acquire Gigle for its Ethernet over powerline chips

Broadcom Corporation has signed a definitive agreement to acquire Gigle Networks Inc.
Gigle's system-on-chip class semiconductor devices can be embedded inside consumer electronics and other convergence class IT products. Gigle's chips connect to other devices at home/office by using high-speed Ethernet over all of the home's existing wiring (powerline, phoneline and coaxial cable) and WiFi. The built-in intelligent switching agent inside the chip continually monitors changes in link conditions and negotiates with other nodes in the network to determine the optimal paths and bandwidth needed to deliver content over wired and WiFi channels based on QoS metrics.

By acquiring Gigle, Broadcom adds the above technology to its technology capabilities, mainly the powerline. Gigle Networks' powerline networking technology is HomePlug AV certified and is designed to be compliant with the IEEE 1901 standard for high-speed powerline communications. Broadcom says the acquisition will also accelerate Broadcom's time to market for G.hn, a new draft specification for existing-wire home networking, developed under the International Telecommunication Union.

"The worldwide market has demanded technologies for powerline, coax and wireless networking using standards such as Wi-Fi, MoCA, HomePlug AV, IEEE 1901 and G.hn to allow the streaming of multiple high definition and 3D video streams," said Jason Blackwell, Digital Home Practice Director, ABI Research. "With electric outlets readily available around the home, more consumers are seeing the benefits of powerline, and service providers' increased push toward gateways and IPTV is expected to help increase the market at a 32 percent compound annual growth rate from 2010 to 2015."

"Broadcom's broadband home platforms span a wide range of segments including set-top box, broadband carrier access and wireless router. With the addition of Gigle Networks' powerline technology, and our proven ability and extensive experience in supporting the multiple methods to connect devices including Ethernet, Wi-Fi, MoCA and DLNA, Broadcom is able to offer service providers and device manufacturers a variety of ways to deploy a whole-home connected environment," said Dan Marotta, Executive Vice President & General Manager of Broadcom's Broadband Communications Group.

"Broadcom is a well known leader in designing highly integrated home networking SoCs to enhance the consumer infotainment experience in the home," said Juan Carlos Riveiro, President and Chief Executive Officer, Gigle Networks. "As the segment evolves and new standards emerge, such as G.hn, technologies from both companies can be combined to enable higher performance, more integrated and lower-cost solutions for the connected home."

In connection with the acquisition, Broadcom expects to pay approximately $75 million to acquire all of the outstanding shares of capital stock and other rights of Gigle Networks.